HC Flags “Catch-22” in TDS Prosecution; Directs Liquidator to Act, Grants Limited Protection

Balaji Bhat Vs CIT (Appeals) -V (Karnataka High Court) HC Flags “Catch-22” in TDS Prosecution; Directs Liquidator to Act, Grants Limited Protection This case before the Karnataka High Court concerns prosecution of a former Managing Director (MD) for failure to remit Tax Deducted at Source (TDS) by a company that was subsequently wound up. The petitioner, former MD of M/s Primus Retail Pvt. Ltd., challenged criminal proceedings initiated u/s 276B & 278B of the Income Tax Act for non-payment of TDS. The company, engaged in retail business, had deducted TDS on rent and salaries during FY ...